(1) An act done by a director is effective even if their appointment, or the
continuance of their appointment, is invalid because the company or director
did not comply with the company's constitution (if any) or any provision of
this Act.
(2) Subsection (1) does not deal with the question whether an effective
act by a director:
- (a)
- binds the company in its dealings with other people;
or
- (b)
- makes the company liable to another person.
- Note: The kinds of acts that this section validates are those that are only
legally effective if the person doing them is a director (for example, calling
a meeting of the company's members or signing a document to be lodged with
ASIC or minutes of a meeting). Sections 128-130 contain rules about the
assumptions people are entitled to make when dealing with a company and its
officers.